Link to original memo, distributed April 29, 2024: FY25 Changes to the BSR Memo

TO: L&S Chairs, Directors and Department Administrators

FROM: Eric M. Wilcots, Dean, College of Letters & Science

DATE: April 29, 2024

RE: FY25 Changes to the BSR

In L&S we continue to evaluate how the BSR should evolve to provide the greatest flexibility to allow departments to meet their mission while also ensuring the College remains financially sound. With this goal in mind, we announce several significant changes to the BSR that will be effective beginning in FY25. 

Conversion of Faculty Budget Savings to Ongoing Tally Sheet Base: 

At the end of this fiscal year, we will begin the process of converting faculty budget savings to ongoing tally sheet base.

Jennifer Klippel, Associate Dean for Innovative and Strategic Budgeting (ADISB), will review the last two years of savings and discuss with each department converting the lower of the two numbers to on-going tally sheet base.  If a department had faculty budget savings one year and faculty budget loss another year, no adjustment will be made until a clearer data pattern emerges.  If a department has had two years of faculty budget deficits, the lower of the two deficit numbers will be debited from the ongoing tally sheet and added to the faculty budget. 

Before converting these savings to ongoing base, the ADISB will reach out to each chair & department administrator (DAs) to confirm they are comfortable the proposed number reflects a sustainable savings amount or if they prefer to convert a lower number to provide greater security against running faculty budget deficits in future years.  After conversion of the savings to base, each year the faculty budget actual spending will be compared with the budget and any amount /- 5% of the new faculty budget will result in a base correction from the ongoing tally sheet. 

Adjustment of Staff Budgets from Ongoing Tally Sheet Base:

At the end of this fiscal year, we will also begin the process of truing up staff budgets from ongoing tally sheet base.

Currently, many L&S departments are significantly overspending their staff budgets.  Therefore, it is vital we right size these budgets with ongoing base resources from the tally sheet.  ADISB will reach out to chairs and DAs as we approach year end for departments who appear they will end the year significantly over budget.  The ADISB will share data regarding all staff currently paid on 101 and departments will be able to identify staff who are temporary hires and remove those from the base adjustment.  In subsequent years after the initial correction, actual spending will be compared with budget and any amount /- 5% of the new staff budget will result in a base correction from the ongoing tally sheet.

For the small number of departments that are currently underspending their staff budgets, the ADISB will reach out to the chair and department administrator to determine if they think those savings will be sustained or reflect vacancies that will soon be filled.  Please keep in mind that with current limitation on staff hiring, many vacancies will remain open. 

Change to Year End 101 One-Time Balance Process:

Beginning with the FY24 year-end close out process, one-time balances will no longer be held on 101 and will be converted to 150 funding.

In preparation for potential changes from the roll out with the new campus budget approach as well as the implementation of the Workday system that will both necessitate simplification of budgetary oversight and controls, L&S is eliminating the process of carrying over unspent 101 funding or one-time deficits as 101. Units will still receive the amount of unspent 101 funds or be charged for 101 deficit spending but will receive that as 150 funding.

Having these funds as 150 will allow for greater flexibility to meet all aspects of the departmental mission.  Note that as these funds are one-time, they cannot be used to support ongoing staff raises or renewable staff hires.  Also, while details are still being ironed out, our understanding is the forthcoming limits on administrative staff hiring will make it more challenging to have any additional non-instructional FTE on 101 funding, even those that are temporary.  Therefore, it will make sense for departments to utilize these 150 resources for situations where temporary salary spending may be needed rather than overspending BSR budgets as they have historically.  Beginning with close of fiscal year FY25, departments will be charged a fringe penalty equal to the RSP staff fringe rate for overspending on their 101 BSR budget in total. 

Historical positive and negative balances from the 101 one-time tally sheet will be brought forward to this new 150 account.  Any departments that have a negative balance in the one-time 150 account at the end of a fiscal year will not be authorized for faculty or renewable staff hires in the coming year until that deficit is resolved.  The ADISB will continue to provide fall and spring forecasts to departments to facilitate planning each year as well as check-ins around longer term strategy. 

Departments should still get approval for STS and graduate assistant requests on these one-time 150 funds from TLA and HR as they would for STS and graduate assistants funded on other funding sources.  In addition, departments should coordinate with and get approval from Chris Bruhn for any remodeling projects on these one-time 150 funds, as they would for projects on other funding sources.  Email approval by the AAD and ADISB needs to be obtained for expenses in excess of $10,000 funded by one-time 150 funds and can be requested at any time during the year. 

We note that as conversations concerning the campus budget approach continue to evolve, we may need to make further changes to the BSR in the months ahead.